Why Contractors Should Get Insurance
Most contractors are charged with the responsibility of the construction sites they work on. Contractors are required to supervise everything and ensure all aspects of the project plan are going on well. The security and safety of all the people involved in the construction should be a contractor’s top priority. However, regardless of how contractors try to keep everyone safe, injuries and workplace accidents still happen from time to time. No matter how stringent the safety regulations of a construction site are, accidents could occur and land a contractor in legal jeopardy. This is why every contractor requires contractors’ liability insurance no matter the project they are working on. Read on to discover why you as a contractor needs to have contractors’ liability insurance.
Contractors liability insurance has plenty of benefits for contractors in terms of coverage. Contractors with good insurance coverage are rest assured that in case any third party gets injured or involved in an accident at the workplace, the insurance provider will handle any accompanying medical costs. Additionally, the insurance provider is responsible for covering any damages caused to the property as a result of the accident. For example, workers at the construction site could accidentally mishandle equipment leading to damage of property. Whenever this happens, the insurance provider should cover all the costs needed to replace or fix the damaged areas. Some extent, the insurance should also cover defence fees if any. Hence, contractors with good insurance coverage can be covered by their insurance providers if they get taken to court following a lawsuit.
By having insurance, a contractor is better positioned to secure future jobs. If you wish to apply for a job and provide your services, you will often be required to provide proof of liability insurance. In the past, providing such proof was optional however, things have changed now and it has become a rule. Possession of general liability insurance is not only required by government agencies, but also most general contractors. Contractors not able to provide proof of their insurance stand high chances of losing future job opportunities.
Contractors that raise eyebrows on the costs of being insured should contemplate on the Benefits of having it. The costs involved vary mostly based on the kind of insurance obtained and the extent covered. Another factor that determines the cost of insurance is the risks that accompany a business. For example, contractors that specialise in areas of significant risk such as roofing contractors will often have higher costs of insurance. However, worry not since the coverage is usually better. Contractors are spoilt for choice on the number of insurance providers to choose from, which is why they should only select those with B ratings and above.